On October 11, 2023, significant activity was noted in the options market for Sunrun Inc. (NASDAQ:RUN) as investors purchased a remarkable 145,234 put options. This figure represents an increase of approximately 184% compared to the average daily volume of 51,075 put options, indicating heightened interest or concern among traders regarding the company’s stock.
In conjunction with this options trading, Sunrun shares experienced a notable increase of 10.8%, climbing by $2.05 to reach $21.11 during the trading hours. Approximately 7,082,679 shares changed hands, which is below the average volume of 15,299,330. The company’s market capitalization stands at approximately $4.87 billion, and its performance metrics include a current ratio of 1.41, a quick ratio of 1.02, and a debt-to-equity ratio of 3.70.
Recent Financial Performance
Sunrun reported its quarterly earnings on August 6, revealing an earnings per share (EPS) of $1.07, which surpassed analysts’ consensus estimates of a loss of $0.18 by $1.25. The company generated revenue of $569.34 million for the quarter, exceeding the anticipated $555.42 million. Year-over-year, this represents an 8.7% increase, while the firm’s return on equity was positive at 14.19%. However, Sunrun reported a negative net margin of 120.59%. The stock has fluctuated significantly over the past year, with a low of $5.38 and a high of $22.44.
Moving forward, analysts project that Sunrun will report an EPS of -0.43 for the current fiscal year, indicating challenges ahead.
Institutional Investor Activity
Recent changes in institutional investment have also been noteworthy. Several firms have adjusted their positions in Sunrun. For instance, GAMMA Investing LLC increased its stake by 3.5% in the third quarter, now holding 17,971 shares valued at $311,000 after acquiring an additional 607 shares. Similarly, Vanguard Personalized Indexing Management LLC raised its holdings by 5.4%, now owning 18,809 shares worth $325,000 after purchasing an additional 967 shares.
Osaic Holdings Inc. and IQ EQ FUND MANAGEMENT IRELAND Ltd. also made increases in their stake, reflecting a growing confidence among institutional investors. Overall, institutional holdings have reached 91.69% of Sunrun’s stock.
Analyst Ratings and Outlook
Sunrun’s stock has been the subject of various analyst ratings. On October 13, Susquehanna raised its price target from $13.00 to $23.00, assigning a “positive” rating. KeyCorp upgraded the stock from an “underweight” to a “sector weight” rating earlier in July. Deutsche Bank Aktiengesellschaft increased its price target from $11.00 to $20.00, maintaining a “hold” rating. Goldman Sachs also revised its price target upward from $19.00 to $21.00, assigning a “buy” rating.
Currently, one analyst rates the stock as a Strong Buy, while fourteen have issued a Buy rating. Ten analysts have assigned a Hold rating, and one has given a Sell rating. According to MarketBeat.com, Sunrun holds an average rating of “Moderate Buy” with an average price target of $18.60.
Sunrun Inc. specializes in designing, developing, and installing residential solar energy systems across the United States. The company also markets solar products and provides battery storage solutions, serving both residential and commercial clients.
As investors closely monitor Sunrun’s performance and strategic direction, the heightened trading activity and analyst upgrades suggest a period of significant interest in the company’s future prospects.
